WASHINGTON, D.C. — Budget challenges and rising costs stand at the forefront of issues driving decisions in the global meetings and events industry according to the Q3 2024 Meetings & Events Pulse Survey conducted by Global DMC Partners (GDP), the largest global network of independent DMCs and specialized event service providers.
“Rising costs have been a persistent issue since late 2022, and our latest survey reveals that higher accommodation, F&B, and A/V rates are among the top challenges for today’s planners,” said Global DMC Partners President and CEO Catherine Chaulet. “Planners are facing a perfect storm of increased costs and inflationary pressures. This leaves little room for innovation without significantly adjusting budgets.”
The survey is based on 165 responses collected from this June 27 through Aug. 9, polling meeting and event professionals, the majority of whom are based in the U.S. and Canada, with 20% in the U.K. and Europe. Respondents were divided between corporate/direct planners (37%), agency/third-party planners (40%) and association and independent meeting planners (23%), as well as other (freelancers and suppliers).
Aside from meetings and incentives budgets, the report covers a variety of topics such as cost management strategies, lead times, Diversity, Equity and Inclusion (DEI) integration, sustainability practices and industry adoption of AI tools.
From 2023 to 2024, 39% of respondents saw budget increases, 16% saw decreases, and 45% reported no change. Breaking down the statistics further, 44% of U.S. and Canadian respondents experienced budget increases, compared to 27% internationally.
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According to the survey, cost increases in areas like hotels, F&B, and AV are driving the need for higher budgets. Over 40% of participants indicated that they have seen an increase of between 11% and 20% on F&B costs compared to two years ago. Thirty-one percent reported the same amount of increase on ground transportation costs. A quarter of respondents said they have seen an increase of 21% to 30% in hotels/venues, food & beverage and airfare costs.
“Even with a 10-20 percent rise in budgets, it’s not enough. Planners are still forced to make tough decisions — reducing program elements, shortening event durations, and seeking early contracting opportunities,” Chaulet said.
Costs are also influencing how meeting and event professionals can integrate sustainability initiatives into events. Nearly 80% of planners find it can be challenging to incorporate sustainability into their programs due to costs. There is a disparity among the level of sustainability incorporated into programs, as well. While 7% of organizations in the U.S. indicated that they integrate sustainability practices all the time or into every program, 31% of their international counterparts reported the same.
According to the survey, some strategies to cut costs include reducing the number of days of the program or reduce and/or consolidate the number of programs per year.
AI adoption within the MICE industry is showing a large increase since the last survey at the end of 2023/early 2024. Thirty percent of planners in the last survey reported using it, and now nearly half of planners say they use it frequently, with ChatGPT and Microsoft CoPilot as the most used.
“The rise of AI in our industry is game-changing,” Chaulet said. “It allows planners to streamline processes and focus on creating memorable experiences, even amid budget constraints.”
